The recent State Housing Plan 2018-2021 foresees granting aid to young people for the purchase of a home. Íñigo de la Serna, Minister of Public Works of Spain, said that if this proposal is approved, it will favor people under 35 years old who receive incomes less than three times the Public Indicator of Multiple Effects Income (or 19,170.39 euros year in 12 installments), can benefit from up to 10,800 euros with the limit of 20% of the purchase price.
This population must complete other requirements to have these aids, such as the property to be purchased will be their habitual and permanent home for a minimum period of five years and not own another property in Spain.
The project also stipulates other aid for young people to rent. In particular, it would grant up to 50% of the monthly rent for leases ranging from 600 to 900 euros per month and up to a maximum of three years. In this case, the income of the beneficiaries must also be less than three times the Iprem (19,170.39 euros per year in 12 installments or 22,365.42 euros in 14 installments) and the house must be the usual one during the aid period. Neither must the beneficiary, own a house in property.
The Autonomous Communities had the opportunity to review the draft of the plan and present its suggestions and contributions. The Ministry of Public Works expects it to take effect in early January 2018.
Fernando Encinar, head of studies of the portal specialized in the real estate market Idealista, exposed his criticisms in front of this project. "It's disappointing for several reasons. He resorts to old formulas with the start-up of aid to young people for the purchase of a house, generating the false expectation that everyone must own. In addition, it again encourages the massive indebtedness of the young, "he said in an interview posted on the website.
Encinar agrees that the Government needs to encourage measures to increase the nascent rental market, but not in the way described in the draft plan. "Giving aid directly to young people under 35 to rent a house will result in an artificial increase in rental prices."
The specialist added that this plan will be detrimental to the population 35 years of age (and earn more than € 19,170.39 per year in 12 payments) who are not eligible for this aid, as they will not have the 'extra' of the Government, but they must face a price increase provoked, precisely, by that state aid.
Idealist's head of studies proposes to recover the tax deduction of rent also for the lessee, so that everyone can enjoy this benefit and that "both the tenant and the owner declare the existence of a lease."
Encinar believes that the Government should increase the rental offer giving greater legal coverage to the owners so that they feel confident to put their homes in rent to increase the supply and also "collaborating with municipalities to provide building land for construction of housing for rental, in collaboration with private enterprise.
Other strategic lines of the plan are:
Aids of up to 40% of rental income with a limit equal to or less than 600 euros or up to 900 euros. This assistance is intended for people with incomes less than three times the Iprem and can enjoy it for three years, provided that the house is the habitual and permanent address and do not own another home.
Program for the development of housing for rent: the objective is to increase the number of housing units for rent, both public and free. The beneficiaries are agencies, administrations and public or private companies.
Assistance program for the evicted persons: the objective is to provide vacant and available dwellings of Sareb and financial institutions to be occupied. This is a macro agreement and then reach a specific agreement with each CCAA. Beneficiaries will be evicted with incomes less than three times the Iprem and without availability of housing.